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#6 "To consider the future" is "to consider the present" |
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#The importance of recognizing and fostering signs of change |
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Mr. Hayashi, you started in the Economic Stabilization Board (predecessor of the Economic Planning Agency) and participated in rebuilding the Japanese economy after WWII and supported advanced economic growth for Japan. And now, you are working in the world of social contributions and NPOs. Could you tell us how you got involved? |
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Hayashi:
One turning point came during a trip to France.
I was visiting an agency in France similar to our Economic Planning Agency. There I met Pierre Masse, who was the head of the section at that time. Mr. Masse was a civilian who was the president of a public electric company in France. The first words that he said stuck in my head, still stick in my head. He said, "To consider the future is to consider the present."
<Discovering Seedlings>
Modern society is always in motion and change. Amidst all this change, there must be some "sign" to predict the change in tomorrow's society, some "seedling."
A seedling today may be of little consequence, but tomorrow or the day after, it might become a sturdy tree. The discovery of these seedlings and the consideration of what the seedling might mean is the same thing as considering the future. Mr. Masse believed that we shouldn't think of the future in vague terms.
 I participated in the economic planning of postwar Japan at the Economic Review Agency. Japan's economic plans are always expressed in durations of five years or eight years, or some number of years.
But, none of these plans last through their intended lifetime. A five-year plan becomes useless after about two years. So, revisions are made all the time. Thanks to that, I was never without work (laughs). The government bases its budget on collected taxes. So, they do things that become big, national trends. But the "signs of change" that Mr. Masse talked about are not nationwide, rather, they occur in spots throughout society. However, the government looks at these events as localized phenomena and usually does nothing about them.
I have bitterly reflected upon the fact that we never discovered the signs of change when they were still but signs. That was one of the reasons I went over to a private foundation.
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# Discovering latent needs through long-term vision |
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So, you became involved in the start-up of the Toyota Foundation 30 years ago to "work to foster the signs of change," work that you couldn't do in the government. Even beyond that you have been involved in different work for social contributions, and in fact have been involved in this type of work longer than you were in public office.
Could you comment on the different roles and time scales for "government work to support major trends" and "foundation work to foster signs of change?" |
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Hayashi:
We should measure national interest with a long measuring stick.
The government usually sets budgets on a year-to-year basis. If there are no immediate results, there are immediate public outcries accusing the government of wasting tax money. That's why the government can't work in the long term. They hate failures, and that's why precedents are so respected. I'm sure it's the same in other countries, too. But, this short-term planning is no way to meet the changing needs of society. Noticing the signs of change, trying different things: that's what private foundations and NPOs do. There will be mistakes and failures, but if the government were to try to do this, it would be called a waste of tax money. NPOs will have to use a different measuring stick than the one the government uses for national interest.
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Hayashi:
I once was involved in reviving the traditional cultures in some Southeast Asian countries. All of these countries have long histories, but the traditional culture had been buried and had disappeared. There was a desire to revive the culture, but no money to do so. At that time, Japan had a strong economy and invested in things that brought results that could easily be seen, projects such as building bridges and roads, and putting up schools and hospitals, but no investment was made in reviving the old culture. But, foundation program officers continued to talk to the people and dug out this latent need to revive traditions. The people couldn't really say this, but this is what they really wanted. And if we helped them, then they would think, "the Japanese really do understand us," wouldn't they? I think that this is part of Japan's national interest.
 We worked on translating Japanese books into Southeast Asian languages and translating their books into Japanese. We also translated Thai books into Indonesian and Indonesian books into Thai.
This, too, was the result of questions asked by program officers. They heard comments like, "Japanese like reading, but no one knows what novels are the best sellers in Southeast Asia," and "Japan is a nation that loves translations, and they translate novels from France, America, and England, but no one even notices the best sellers of the nations of Southeast Asia." That was the beginning. |
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# Non Profit Enterprise = NPE |
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So in this way, non-profit organizations (foundations or NGOs/NPOs) are a sector more suited to fulfilling different roles on different time scales than either government or business, and in order to fill this role effectively, there must be an increase in the number of independent non-profit organizations. It seems that NPE (Non Profit Enterprise) is a concept that will change our value system.
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Mr. Hayashi, you have said that the contradiction you felt working in a foundation while having to guide that organization under the instruction of government officials who have different roles and purposes inspired the NPE concept, that it began as a thought of creating a non-profit company disregarding the authorities.
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Non-Profit Foundations in Japan (Private Foundations, Corporate Foundations)
Non-Profit Foundations generally refer to Corporate Foundations and Private Foundations established under Article 34 of the Civil Code. The following criteria must be met to establish a Non-Profit Foundation.
(1) Foundations must operate for the public good. Foundations must operate with the purpose of actively realizing the profit of a large number of people. On September 20, 1996, the Cabinet approved the "Standards for Approving and Regulating Non-Profit Foundations." The Standards exclude class reunions, special interest groups, and fan clubs from this classification.
(2) Foundations must not seek profits. Foundations must not operate primarily to distribute profits to foundation board officers, foundation members, or financial contributors to the foundation nor can they reduce assets.
(3) Foundations must obtain approval from pertinent authorities. In order to establish a foundation, approval must be granted from the managing government authority for the type of activity to be undertaken.
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Although NPO activities are supported by volunteers and contributions from private citizens in America and Europe, Japan still has a large corporate society identity rather than a civic society identity.
If we look at the distribution ratio for contributions to NPOs, Japan has only 5% from private sources while the US has 85%. In contrast, corporate contribution in Japan accounts for 84% (6% in the US). (from Yuuhihaku: NPO Data Book)
It is important to increase private contributions.
On the other hand, by better understanding the deeper involvement of corporations in society, a new type of non-profit organization will be formed if the concept of non-profit enterprise spreads. |
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+ Companies and Organizations with NPE Philosophies |
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Press Alternative
Proposes a new alternative to the current social system. Operates "The Third World Shop" supporting the independence of producers from developing nations through fair trade and a "Citizen's Bank" that finances industries with a social consciousness.
Grameen Bank (Bangladesh)
Improves the quality of life by making small denomination, unsecured loans to the extremely poor, usually women, who are unable to secure a loan from commercial banks.
http://www.grameen.org/
http://www.grameen-info.org/
Women's World Banking(World Organization)
Supports women entrepreneurs by supplying expertise for acquiring capital, financing, company establishment, etc.
http://www.swwb.org/
Newman's Own (US)
Company established by actor Paul Newman. All after-tax profits are used for social contributions. Since its inception in 1982, more than $125 million has been donated to NGOs for children's, educational, cultural, disaster relief, and environmental causes.
http://www.newmansown.com/
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The system for recognizing NPOs as legal entities has just recently been established in Japan and the public is beginning to understand non-profit organizations. Ms. Takahashi, would you care to comment on the budget set by the government to support NPOs? |
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Takahashi:
I believe that now is an extremely important period for NPOs. If NPOs bend to economic pressures and use government funds, then NPOs and government will merge, despite the fact that they should have different roles. NPOs may even start taking subcontracts. It is very important that mistakes are avoided. |
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So, it is important for NPOs to make their purpose clear and show that they have a firm money policy. |
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Takahashi:
That's why the economy is important. That's why NPOs must also earn their own income. It makes no difference if they claim that the government is their partner, because if the government gives money, it also gives advice. This inclination for advice is even stronger because the money comes from taxes.
NPO income is different than corporate profits. The source of NPO earnings comes not only from business activities but also from private donations and volunteers. On the one hand, NPOs must develop their business activities to solicit support from citizens while helping citizens reach maturity.
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Hayashi:
That is why we call NPOs "the third sector." Profitable businesses should be left to the second sector (industry), national interests left to the first sector (government), and the third sector should be social "pioneers." That's also why NPEs are important. |
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It would be wonderful if there were more NPO/NGOs with a NPE approach to create a new social trend. |
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# The Importance of Internal Public Relations |
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The Japan Philanthropic Association often has chances to speak with corporate liaisons for social contribution, what do you tell them? |
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Takahashi:
We tell them that internal public relations are as important as external public relations. With the slow economy, times are difficult for social contribution sections because they are usually under cost management restrictions. Because the section in charge of social contributions isn't in the mainstream of most companies, they have to be open to feedback the external needs of society coming from into their own company. At these times, it is important to decide how to make other sections see that you are contributing to the company, not necessarily in the short term, but certainly over the long-term. We tell them to get other sections involved and deepen their understanding. |
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# Make them think it's fun and they're losing out if they don't participate |
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Lastly, could you comment on social contribution activities? |
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Hayashi:
People involved in volunteer activities often say that they volunteer as a social mission. Social missions are important. But there is another element-enjoying what you're doing, or more simply, pleasure. But, once when I said "pleasure," I was scolded by an elderly volunteer. She said, "Don't say such a frivolous thing!" (laughs) |
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Takahashi:
Frivolousness is itself a motivator. That's why it's not good when you're told that you're great and wonderful. You have to make people think, "I've got to do that or I'll be losing out" or "It looks like fun." |
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That's right! Mr. Hayashi and Ms. Takahashi truly enjoy what they are doing. |
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+ The Difference Between NPOs and NGOs |
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The term "Non-Governmental Organization" (NGO) was first used in the 1945 United Nations Charter to stipulate the cooperative relationship between the United Nations and private organizations outside of the government. Currently, the term refers to non-profit organizations under private leadership involved in global issues from the position of independence from government, regardless of whether there is a cooperative relation with the UN.
In contrast, the term "Non-profit Organization" (NPO) came into popular use in Japan after the December 1992 enactment of the Law to Promote Specified Non-Profit Activities (NPO Law). Originally, the term was used in the US legal and tax systems. All private organizations are called NPOs if they operate as non-profit and non-governmental, even if they have not received legal recognition under the NPO Law.
Although both NGOs and NPOs exist outside of government and industry, in Japan there is a tendency to use the label NGO to mean "organizations concerned with development collaborations that exceed national borders" and NPO to mean "organizations concerned with regional issues or welfare issues, chiefly domestic."
There are also "Volunteer Organizations." A volunteer is someone who participates in activities of his or her own volition (good will), and a volunteer organization consists of these people. A good example is the volunteer activities that occurred after the Kobe Earthquake (Great Hanshin Earthquake).
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Japan Philanthropic Association
http://www.philanthropy.or.jp/ (In Japanese)
The philanthropic society is the new look of Japan in the 21st century, and we need two power bases to bring it to pass. One is human power-the people to do the activities. The other is financial power-the money to fund activities. The Association was formed to achieve these goals.
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Major Activities
Bouquet of Voices
Managing a website to allow users to voice record timely information on the Internet. Providing information necessary for daily life to the visually challenged and elderly.
Animo Network Circle
http://www.animonet.com/(in Japanese)
Promoting private and corporate social contributions through a PC network.
"Hang In There, NPOs!" Project
NPO support project jointly sponsored with the Japan Tobacco Foundation.
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Philanthropy
Philanthropy is the combination of the Greek words "philo" (love) and "anthropos" (man). Although the word is often translated into Japanese as "charity" or "benevolence," it is used to mean "social contribution" or "contributions to non-profit organizations" in many areas including the US.
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Interviewers: Mariko Harada and Soichi Ueda, Think the Earth Project
Photographs: Soichi Ueda, Think the Earth Project |
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We often hear the terms "NPO" and "NGO" used in the media and elsewhere. Mr. Yujiro Hayashi, chairman of the Japan Philanthropic Association, advocates the use of another term: "NPE" (Non Profit Enterprise). Mr. Hayashi is well respected for his many years of service, putting in three decades with the Economic Planning Agency (formerly the Economic Stabilization Board) and three decades making social contributions with public foundations.
What images do the phrases "non-profit company" and "businesses that target social contributions" inspire? What role should NPOs-the "third sector" that is neither government nor business-play? We talked with Mr. Hayashi and Ms. Yoko Takahashi, President of Japan Philanthropic Association.
